LIT crypto: Is Lighter’s $9.5M token burn enough to counter selling pressure?
RWA trading is expanding across platforms. How much of that growth is translating into demand for LIT?
Lighter [LIT] gained more than 10% over the past 24 hours as the crypto market recovered from a brief correction. Its Market Cap had fallen below $1 billion but moved closer to reclaiming that valuation.
The rebound came alongside token burns, growing trading activity, and renewed market interest. But could these developments bring LIT’s correction to an end?
Why is LIT price rising?
Lighter’s buyback and burn mechanism offered one potential driver.
The platform burned over 2.45 million LIT tokens, valued at $9.50 million at press time. That reduced the circulating supply by 0.98%. The tokens had been bought back programmatically through the end of the third quarter of 2026.
Reducing supply can support prices when demand holds up, especially during a broader market recovery. Still, the burn alone cannot guarantee further gains.
Meanwhile, real-world asset [RWA] perpetual futures activity expanded across the sector. Year-to-date Cumulative Volume rose from $21 billion to $4.25 trillion, largely driven by Hyperliquid [HYPE], Binance, and Lighter.
Social interest also picked up ahead of Lighter’s Q3 investor update call, scheduled for mid-October.
Beyond those developments, the Altcoin Season Index reached a yearly high of 65, pointing to improving altcoin performance. That offered a supportive backdrop, though LIT still needed to clear its own price hurdles.
Can LIT hold $3.50 and break $4?
On the charts, LIT had bounced from rising trendline support since May. However, it entered a correction after reaching $5.48 in late September.
A potential double bottom near $3.50 hinted that selling pressure could be easing. Confirmation would require a break above the $4 neckline.
Here’s the catch: Unlike previous pullbacks over the past five months, LIT had yet to revisit the rising trendline. That left the $3 area as another potential support if the $3.50 base failed to hold.
LIT could therefore recover from the double bottom or retest the trendline before attempting another advance.
Buying pressure also cooled during the current session. Cumulative Volume Delta [CVD] registered approximately -1.98K LIT, indicating that aggressive selling exceeded buying.
Meanwhile, the Relative Volatility Index [RVI] rose from 26 to 61 during October, suggesting stronger upward volatility.
A confirmed break above $4 could bring the $5 target into view. Losing $3.50 would increase the risk of a trendline retest, while losing $3 could weaken the broader uptrend.
Final Summary
- Lighter gained over 10% alongside token burns, expanding RWA trading activity, and interest ahead of its investor update.
- LIT’s potential double bottom needed a $4 breakout, while $3.50 and $3 remained downside levels to watch.
